Seven hacks to help you pay off your credit card

If you can, try and pay more than the minimum payment due amount.

Every bit counts because it will not only reduce the amount you owe, it will also reduce the amount of interest you pay.

Pressing pause on your credit card, and only using it when you really need to, can be a great way to get back on top of things. If you can, stop using your credit card until you’ve paid it off. 

If you keep spending on your card while you’re trying to pay it off, you’ll probably pay more in interest and take longer to get debt-free.

Another idea is to only carry your debit card. If you need to buy something, you’re buying it with your own money so you’ll avoid paying credit interest.

Add a new item to your trusty budget and call it ‘monthly credit card payment’, ‘debt destroyer’, or whatever works for you. Locking it in to your budget helps you stay on track.

To set the amount, check the rest of your budget and see how much you could pay. The more you can repay regularly, the less interest you’ll be charged and the faster you’ll have your credit card paid off.

If you need help putting a budget together, check out our guide to setting a budget in six easy steps.

Consider setting up a direct debit or automatic payment for your credit card repayments. That way, you can set it to make sure you never miss a repayment and avoid being charged unnecessary fees and interest.

If you're an ANZ customer, you can also set up an alert in ANZ Internet Banking or the goMoney app so you receive a text reminding you when your credit card payment is due.

You can also set up automatic payments for no fee in Internet Banking or goMoney. To set up a direct debit, call us on 0800 658 044.

If you have savings, you could consider using some to reduce your credit card balance. Why? Because you’re probably paying more interest on your credit card balance than you’re earning on your savings.

Whether this option is right for you depends on your situation. If you’re thinking of doing this, we recommend you seek independent financial advice.

Many credit card providers offer balance transfers – a special interest rate for a certain period if you transfer the balance from another provider’s card to one of theirs. This can be a good way to save on interest costs.

Just remember that: 

• The interest rate goes back to the standard rate after a certain period
• Any other purchases or cash advances outside of the balance transfer amount incur standard interest rates.